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Vijay Rupani denies getting SEBI notice

IANS  |  Gandhinagar 

Chief Minister on Thursday defended himself over reports that the Securities and Exchange Board of (SEBI) had penalized 22 corporate firms, including Rupani's Hindu Undivided

Family (HUF), for allegedly manipulative trading through a listed firm called Sarang Chemicals and financial penalty of Rs 15 lakh.

He stated that the order had been overruled by the appellate tribunal and that there were no financial irregularities carried out by him in any manner.

There were reports suggesting that the capital markets regulator had imposed a combined penalty of Rs 6.9 crore on 22 entities, which during their investigation had revealed to be "connected or related". The had also issued a common show cause notice to all the 22 firms in May 2016 for what it called violation of Prohibition of

Fraudulent and Unfair Trade Practices (PFUTP). Rupani had taken over as Chief Minister on August 7, 2016.

In an order dated October 27, said that the violations by the companies and the two brokers have been established and has hence imposed monetary penalty on each. The notice has been for two categories - one for price manipulation and the other for misleading appearance and creating fake volumes in the shares of Sarang Chemicals. The directed Rupani's HUF to pay Rs 15 lakh, while three other individuals had been asked to deposit Rs 70 lakh each or more.

"I have not received any notice.

The said order was one-sided and incorrect. One of the persons named in the list had approached the Securities Appellate Tribunal (SAT), which is a body above The SAT has ruled that the ruling was incorrect," Rupani told the media. "There is not an illegality equivalent to even the tip of a safety pin in these transactions."

in its order on its website posted on October 27, had alleged manipulative transactions by Rupani between January and June, 2011. Following this there were reports in the media stating as saying that Rupani's HUF and 17 other entities "had indulged in artificial volume rise/creating misleading appearance of market/getting unlawful or unfair gain", and Rupani had been asked to pay the penalty within 45 days.

However, when checked, the page was not available on the website. Instead, it carried the message of "Error 404".

Later in the evening there were some clarifications sent from the Chief Minister's Office regarding the matter.

The statement reads, 'The SAT had cancelled the order on penalty regarding the transaction of Sarang Chemicals shares. Moreover, the transactions carried out by in the HUF account in Sarang Chemicals amounts to a mere 0.1 percent of the total transactions of the company, so there was no undue profiteering from the


The statement says, "bought shares valued at Rs 63,000 in 2009 and in 2011 he sold them at Rs 35,000 at a

loss of Rs 28,000. He has not committed any violation of SEBI's guidelines nor carried out any kind of illegal financial transactions.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 09 2017. 21:06 IST